New Zealand Crimes Act Modified to Include ‘Wage Theft’
HR Policy Global view: While wage theft is often penalised through civil codes, there are a handful of countries where wage theft is a criminal offence. It is important for senior HR Leaders to understand the implications of their intentions and decisions in relation to salary structures and payments, as individuals in authority can be held personally liable for their actions.
Why it matters: In March, New Zealand followed Australia in the criminalisation of wage theft – where the intentional underpayment of wages or entitlements was made a criminal office from January 2025. In both jurisdictions this doesn’t include honest mistakes or errors in the payment of wages and allowances.
While Australia enforces the law through the Fair Work Act (Australia’s key labour legislation), New Zealand has amended section 66 of the Crimes Act to incorporate wage theft.
Observers have raised concerns about the amendment's suitability, focusing on the standard and enforcement aspects:
Criminal standard of proof: The amendment establishes the criminal standard of proof as 'beyond a reasonable doubt'. Previously, employees could pursue unpaid wages through a civil process based on the 'balance of probabilities'.
Enforcement responsibility: The enforcement of the Act rests with the Police, as opposed to the Labour Inspectorate. This has prompted questions regarding the resources, skills, and time required to investigate complex wage matters, and whether the NZ Police are adequately equipped for such tasks.
Public engagement: There is potential hesitancy among certain populations to engage with the Police, which may lead to unresolved wage disputes.
While wage theft criminalization isn't universally practiced, the Global Union movement in Europe has recently emphasized a more extensive application of criminal penalties for labour offenses.
Considerations for Employers
Brand focus: In both New Zealand and Australia, wage theft has become a prominent issue in the media spotlight. Employers are urged to take necessary measures to ensure accurate payment of salaries and allowances.
Keeping informed: Employers in New Zealand should stay updated on potential changes in the coming months as new procedures for investigating complaints are established.
Michelle Swinden
Executive Director, Asia-Pacific, HR Policy Global
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